How to Buy Crypto with Trading 212

Summary: Summary: Trading 212 provides an alternative way to engage with the cryptocurrency market through Contracts for Difference (CFDs), enabling investors to speculate on crypto prices without directly owning the digital assets. This approach, while unique, lacks the feature of actual crypto purchases and transfers.

For investors seeking direct cryptocurrency trading, eToro stands out as a regulated and secure option. It offers a comprehensive range of over 3,000 assets, including various cryptocurrencies, with a competitive fee structure. eToro's features make it an appealing choice for those aiming to diversify their investment portfolio with direct cryptocurrency purchases.

Can I Buy Crypto with Trading 212?

Trading 212 enables its users to invest in cryptocurrencies, but not through direct purchases. Instead, the platform offers Contracts for Difference (CFDs) that track the value of various digital assets. This method allows users to speculate on cryptocurrency prices without owning the actual coins.

Investors should be aware of the risks involved with CFDs, such as market volatility and the complexity of these financial products. For a more tangible ownership experience, it's advisable to use a dedicated cryptocurrency exchange in the UK where the actual digital assets can be purchased and transferred to a personal wallet.

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How to Buy Crypto with a Trading 212 Alternative

For UK and European individuals exploring cryptocurrency options beyond Trading 212, eToro offers a viable solution. Renowned for its wide-ranging asset portfolio, eToro provides access to an extensive selection of cryptocurrencies, along with stocks and ETFs. Its user-friendly platform, combined with strict regulatory adherence in the UK and Europe, makes it a secure choice for traders. With a global user base of over 30 million, eToro is a trusted platform for crypto investments.

Here’s a simple guide to getting started:

1. Account Creation: Visit eToro's website for a straightforward setup and essential identity verification, ensuring compliance with security and regulatory requirements.
2. Funding the Account: Use the 'Deposit Funds' button on the dashboard to begin your investment journey.
3. Deposit Choices: Select your deposit amount and currency. eToro offers multiple deposit methods, catering to varied user preferences.‍
4. Crypto Investment: Once funded, explore and invest in a range of cryptocurrencies available on eToro.

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What are the Fees?

In crypto-equities, ETFs, or similar financial offerings on Trading 212, users will find an absence of explicit or upfront fees. Instead, the platform utilizes a spread, the difference between the buy and sell prices of assets, generally around 1%. This spread represents the cost to users.

Comparing this with eToro, a platform we advocate for crypto investment, the fee structure is similar. eToro's distinctive advantage lies in offering direct purchases of cryptocurrencies, broadening investment options and allowing for self-custody of assets. This is a key differentiator from Trading 212, which primarily provides derivative-based and indirect crypto investment opportunities.

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Will Trading 212 Offer Real Crypto Assets? 

Given that Trading 212 removed crypto assets from its platform in early 2021 due to perceived high risks, it seems unlikely that it will reintroduce direct cryptocurrency investments in the near future. This decision indicates the platform's cautious approach to managing crypto assets within the regulatory frameworks of the UK and Europe.

Re-integrating cryptocurrencies would not only necessitate a considerable investment in technology and security but would also require a shift in the platform's current risk assessment strategy. As there have been no signs of such a change in direction, it's reasonable to expect that Trading 212 will continue to focus on its existing range of financial products, which excludes direct transactions in cryptocurrencies.

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Bottom Line

In conclusion, Trading 212 offers a unique approach to cryptocurrency investment through Contracts for Difference (CFDs), allowing users to engage with the crypto market without owning the actual assets. This contrasts with platforms like eToro, which provide direct cryptocurrency purchases and a more traditional ownership experience.

While Trading 212's cautious stance and regulatory adherence in the UK and Europe make it unlikely to offer direct crypto assets soon, it remains a valuable platform for those interested in derivative-based crypto investments. For investors seeking direct ownership of digital currencies, exploring alternatives like eToro could offer a more suitable solution.